Key Takeaways ANET's 2026 sales and EPS estimates imply 39.1% and 35.6% growth, with EPS estimates up 11.3%.IBM's 2026 sales and EPS estimates imply 4.3% and 6.4% growth, while EPS estimates fell 0.7%.Arista surged 29.4% over the past year, while IBM fell 9.7%; IBM trades at a lower forward P/E. Arista Networks, Inc. (ANET - Free Report) and International Business Machines Corporation (IBM - Free Report) are leading players in the enterprise IT infrastructure and are benefiting from the rise of AI (artificial intelligence) and cloud computing. Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics.
With a focus on hybrid cloud and AI, both IBM and Arista are strategically positioned in the cloud infrastructure market, with overlapping presence in networking infrastructure, enterprise IT solutions and cloud/data-center ecosystems. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for ANETArista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. It is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. Arista has made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced new cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. The versatility of Arista’s unified software stack across various use cases, including WAN routing, campus and data center infrastructure, sets it apart from other competitors in the industry.
In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience and zero-touch automation, with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms. Arista is likely to benefit from its software-driven, data-centric approach, which helps customers build their cloud architecture and enhance the cloud experience they offer their clients.
However, Arista remains plagued by high operating costs. Total operating expenses in the second quarter of 2026 increased around 17.7% to $532.3 million, owing to higher headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesign of products and their supply chain mechanism have eroded margins. Research & development costs rose to $348.2 million from $296.5 million. Lingering supply bottlenecks for advanced products, a concentrated customer base and stiff competition from other networking & cloud native infrastructure vendors are other headwinds for ANET.
The Case for IBMIBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long term. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management, translating into a healthy demand for IBM hybrid cloud solutions.
In addition, the buyout of HashiCorp has significantly augmented IBM’s capabilities to assist enterprises in managing complex cloud environments. HashiCorp’s toolsets complement IBM Red Hat’s portfolio, bringing additional functionalities for cloud infrastructure management and bolstering its hybrid multi-cloud approach.
Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon.com, Inc.’s (AMZN - Free Report) AWS and Microsoft Corporation’s (MSFT - Free Report) Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company faces a potent threat from AI firm Anthropic as the latter’s Claude Code tool can modernize legacy COBOL systems — a foundational programming language deeply embedded in IBM’s mainframe ecosystem. With Claude Code proposing to substantially automate code exploration, documentation, refactoring and security analysis, it threatened to reduce enterprises’ reliance on specialized legacy service providers like IBM, putting its sustenance at stake.
How Do Zacks Estimates Compare for ANET & IBM?The Zacks Consensus Estimate for Arista’s 2026 sales and EPS implies year-over-year growth of 39.1% and 35.6%, respectively. The EPS estimates have trended up 11.3% over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IBM’s 2026 sales and EPS indicates year-over-year growth of 4.3% and 6.4%, respectively. The EPS estimates have declined 0.7% over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of IBM & ANETOver the past year, IBM has plummeted 9.7% against the industry’s growth of 196.1%. ANET has surged 29.4% over the same period.
Image Source: Zacks Investment Research
IBM looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, IBM’s shares currently trade at 17.93 forward earnings, significantly lower than Arista’s 41.49.
Image Source: Zacks Investment Research
ANET or IBM: Which is the Better Pick?Arista currently carries a Zacks Rank #2 (Buy), while IBM has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales and profits to improve in 2026. Arista has better price performance and better estimate revisions compared with IBM, although it is a bit expensive in terms of the valuation metric. Arista has shown steady revenue and EPS growth for years, while IBM has been facing a bumpy road.
Investors looking for the "next wave" in AI and cloud infrastructure may lean toward Arista, while those seeking a broad, resilient tech play may favor IBM. However, with a better Zacks Rank and emerging growth opportunities in AI and cloud infrastructure, Arista seems to have an edge over IBM and appears to be a better investment option at the moment.
Arista Networks míří k výhledu výnosů 12,6 miliardy USD v roce 2026, podpořenému růstem v AI, kampusových a cloudových sítích. Firma zároveň zvýšila roční výhled o více než 1 miliardu USD.
3 AI Infrastructure Stocks to Watch Beyond NVIDIAArista Networks NYSE: ANET executives said the company is investing across its networking portfolio rather than making tradeoffs between AI and data-center switching, software, campus networking and routing, as it works toward its 2026 revenue outlook of $12.6 billion.
Speaking at the Goldman Sachs Communacopia and Technology Conference, Chief Financial Officer Chantelle Breithaupt said the outlook implies roughly 40% growth and provides substantial absolute-dollar capacity for research and development. Arista generally targets R&D spending of 8% to 10% of revenue, she said.
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Beyond the Foundry: 5 Infrastructure Stocks Tackling the AI BottlenecksPresident and Chief Technology Officer Ken Duda said the company’s work with sophisticated hyperscale customers on new technologies and customized systems supports its broader portfolio. Investments in hardware and software for large operators can flow into specialty cloud providers and enterprise deployments, he said.
Supply Chain, Demand Visibility and Margins Breithaupt said Arista raised its annual guidance by more than $1 billion after becoming more comfortable with supply availability and gaining greater order visibility. The company secured purchase commitments, received support from suppliers and had visibility into two quarters of purchase orders by the August timeframe, she said.
5 AI Infrastructure Stocks Smart Money Is Buying Before the Next SurgeWhile supply conditions have improved, Breithaupt cautioned that the industry is not fully beyond component constraints. Availability can be affected by a range of items, from major components such as chips and memory to peripheral items including printed circuit boards and power cables.
Arista’s multiyear purchase commitments nearly tripled to $9.7 billion, according to the discussion. Breithaupt characterized the increase as a demand signal rather than solely the result of component-price inflation. Chips have lead times of roughly 52 weeks, she said, prompting the company to make purchasing decisions well ahead of the order visibility it has in hand.
The company is comfortable with that approach because its portfolio is relatively flexible and components can be used across products and customers, Breithaupt said. Duda added that common switch models and components serve multiple customer types and use cases, helping reduce potential inventory-obsolescence risk.
Arista maintained its 2026 gross-margin outlook of 62% to 64%. Breithaupt said customer mix remains a primary variable, while tariff refunds are expected to contribute about 30 basis points for the year. The company also implemented a targeted price increase for products with meaningful exposure to memory and other component-cost inflation. The increase was intended to offset inflation rather than expand margins, she said.
EOS and Open Networking Duda said Arista continues to view its Extensible Operating System, or EOS, as a major differentiator. He said open-source network operating systems require extensive technical effort to assemble, validate and deploy across specific hardware platforms and customer use cases.
In hyperscale environments, open-source approaches are primarily used to support multisourcing and reduce dependence on a single software supplier, Duda said. He said Arista retains an advantage in demanding routing applications that require fast convergence, large routing tables, policy controls, tunnel encapsulation capabilities and operation within hardware-memory limits.
For cloud providers and enterprises, Duda said EOS, along with Arista’s CloudVision management platform, offers consistent operations across data centers, campuses, wide-area networks and cloud deployments. The same operating-system code runs across those environments, he said.
AI Networking Opportunities Executives highlighted AI infrastructure as a significant growth driver, particularly among NeoCloud providers. Duda said these customers seek best-of-breed technologies to optimize their full technology stacks and reduce token costs, rather than relying on a single-vendor system.
Arista’s offerings include networking capabilities for scale-out AI clusters, as well as CloudVision visibility into both network conditions and AI-server metrics such as flow control, congestion and retransmissions, Duda said. Breithaupt said the company remains selective in its commercial arrangements with NeoCloud customers, using measures such as prepayment where appropriate because not all emerging providers have equivalent financial backing.
Duda defined scale-across networking as the interconnection of AI clusters split across data centers. Unlike scale-out networking within a data center, scale-across applications require greater routing complexity and deeper buffering to account for the longer round-trip distance between geographically distributed clusters, he said.
Power, cooling and data-center-space constraints are driving customers to distribute GPU deployments across locations, creating demand for scale-across architectures and Arista’s 7800R Series platforms, according to Duda. Breithaupt said scale-across represented about 30% of Arista’s stated $3.5 billion AI revenue target for the year.
The company also sees a longer-term opportunity in scale-up networking, which connects accelerators within a rack or enclosure. Duda said Arista has limited share in that market today but expects Ethernet-based standardization, including ESUN, to create an opening. He expects activity to begin ramping in the latter part of 2027, with volume potentially arriving in early 2028.
Campus Growth and Capital Priorities Arista raised its campus revenue target to more than $1.25 billion for the year. Duda said the company initially won campus business from existing data-center customers, but is now seeing a growing share of new campus customers seeking alternatives to incumbent vendors.
The company cited its Cognitive Campus strategy, which includes always-on operations, zero-touch capabilities and zero-trust networking. Duda said Arista’s in-service software upgrades have become a differentiator for campuses supporting 24-hour operations such as hospitals, manufacturing facilities, logistics centers and media operations.
Breithaupt said Arista has roughly 5% market share in campus networking and views the segment as a high-volume, lower-dollar growth opportunity over multiple years.
On capital allocation, Breithaupt said working capital is the company’s first priority as it navigates what she described as step-function growth. Share repurchases remain opportunistic, while Arista continues to evaluate acquisition opportunities but has not identified a target that meets both its technology and cultural criteria.
Looking ahead, Duda said he is particularly interested in applying AI internally and within Arista’s products to build network engineering and operations assistants. Such tools could improve customer efficiency, uptime and operational management, he said.
About Arista Networks (NYSE:ANET)Arista Networks, Inc designs, develops and sells cloud networking solutions for large data centers, cloud service providers, internet companies, enterprises and other organizations. Its portfolio includes high-performance Ethernet switches, routers and wireless networking products used to connect servers, storage systems, users and applications across data center and campus environments.
The company's software offerings include Arista EOS, its Linux-based network operating system, and CloudVision, a cloud-based platform for network management, automation, monitoring and analytics.
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Ciena vykázala rekordní čtvrtletí s EPS 2,11 USD a tržbami 1,67 miliardy USD, ale akcie klesly o 10 % po výhledu tržeb na 1,75 miliardy USD ± 50 milionů ve 4. čtvrtletí fiskálního roku, což bylo v souladu s očekáváním.
Ciena just posted a record quarter with earnings well above estimates, yet its stock cratered 10% while networking peers Arista and Cisco held firm or climbed. The divergence points to a specific pressure point that separates Ciena's story from the…
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Ciena Corporation‘s (NYSE:CIEN | CIEN Price Prediction) fiscal third-quarter beat wasn’t enough to save its stock this morning. An in-line fourth-quarter revenue outlook overshadowed record results and sparked a sharp de-rating in a name that had rallied hard on the AI networking build. Interestingly, Ciena’s peer-group stocks are holding firm, which makes the divergence the story of the session.
Ciena stock is down 10% to $320.38, cutting into a year that had shares up 51% through the prior close. The pullback extends a rough stretch, with Ciena now down 18% over the past month. Today’s move deepens a de-rating already in progress.
Meanwhile, Arista Networks (NYSE:ANET) stock is up 3% to $191.65, isolating Ciena’s specific guidance issue from the broader networking demand story. Meanwhile, Cisco Systems (NASDAQ:CSCO) stock is down 0.1% to $109.31. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY), which tracks the S&P 500 index, is up 1% to $773.17, and the iShares U.S. Technology ETF (NYSEARCA:IYW) is trading higher, so Ciena’s slide isn’t a broad-tape problem.
Guidance Reset Overshadows Record Quarter Ciena reported adjusted earnings per share of $2.11 for the quarter ended August 1, 2026, against a $1.72 analyst consensus, with revenue of $1.67 billion versus a $1.63 billion estimate, up 37% from $1.22 billion a year earlier. Ciena’s adjusted gross margin expanded to 46.4% from 41.9% in the prior-year period, a clean quality print behind the top-line acceleration. Ciena CEO Gary Smith stated, “Today’s outstanding financial performance demonstrates Ciena’s leadership in providing industry-leading, high-speed connectivity solutions as AI continues to drive compounding waves of network investment.”
The problem sits in the forward number. Ciena guided its fiscal fourth-quarter revenue to $1.75 billion plus or minus $50 million, a midpoint that only aligns with the $1.7 billion analyst consensus rather than clearing it. Ciena also raised its full fiscal year 2026 revenue guidance to $6.42 billion, up 35% year over year at the midpoint, but for a stock priced for acceleration, matching isn’t beating, according to Ciena Corporation.
Networking Peers Diverge as Concentration Risk Bites Two Ciena customers together accounted for 41.7% of quarterly revenue, meaning the AI-driven demand is real but narrow, according to Ciena Corporation. Ciena CFO Marc Graff called the period a record quarter, yet that concentration weighs heavier on the Ciena multiple when the forward guide only matches expectations. That mix is what powered today’s de-rating.
Arista Networks stock was up 42% year to date (YTD) through the prior close and is extending gains today on continued AI fabric momentum. Arista posted Q2 FY2026 non-GAAP EPS of $1.02 on $3.04 billion in revenue in its August report, its first three-billion-dollar quarter. Management pointed to Ethernet-based AI networking as a durable share opportunity, with a full-year revenue outlook of approximately $12.6 billion.
Cisco stock was up 44% year to date through the prior close after booking $4 billion in AI infrastructure orders in Q4 FY2026 and guiding fiscal 2027 AI infrastructure revenue to $7.5 billion. Cisco characterized the environment as a networking supercycle. Arista Networks and Cisco holding firm while Ciena resets is the cleanest evidence that this is a company-level issue, not a sector verdict.
Scorecard The table sets today’s session move against the YTD anchor through the prior close for each covered name. Ciena’s reset stands out against modest peer gains.
Name Session Move YTD Through Prior Close Ciena down 10% up 51% Arista Networks up 3% up 42% Cisco Systems down 0.1% up 44% What to Watch Next Ciena’s preliminary fiscal 2027 outlook calls for at least 30% revenue growth on a backlog of $8.5 billion exiting Q3 FY2026, so the December fourth-quarter report becomes the next real inflection point for the stock. Management framed the environment as a multi-year, supply-constrained investment cycle. That keeps the debate about pace and share rather than direction.
Position sizing in Ciena shares should account for both the customer concentration and the tendency of supply-constrained networking names to trade on incremental order signals rather than trailing beats. A moderate approach makes sense while the guide-versus-consensus gap sorts out. Ciena’s elevated valuation raises the bar for any forward number, and today’s tape shows what happens when it isn’t cleared.
The broader read is that AI networking demand remains intact, with Arista Networks and Cisco both carrying rich YTD gains. Follow-through in those two names during the afternoon session may indicate whether today’s Ciena move stays contained or spreads to peers. Ultimately, the IYW ETF trading higher today reinforces the containment case rather than a sector-wide unwind.
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Barbara Oil Co. ve 2. čtvrtletí otevřela novou pozici v Arista Networks a koupila 7 370 akcií za zhruba 1,246 milionu USD. Arista zároveň ve 2. čtvrtletí překonala odhady zisku i tržeb.
Barbara Oil Co. bought a new position in Arista Networks, Inc. (NYSE:ANET – Free Report) during the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund bought 7,370 shares of the technology company’s stock, valued at approximately $1,246,000.
A number of other hedge funds also recently bought and sold shares of the business. Brighton Jones LLC increased its position in Arista Networks by 321.7% during the 4th quarter. Brighton Jones LLC now owns 7,806 shares of the technology company’s stock valued at $863,000 after purchasing an additional 5,955 shares during the period. Revolve Wealth Partners LLC purchased a new position in Arista Networks during the fourth quarter valued at $202,000. Bison Wealth LLC bought a new position in Arista Networks in the 4th quarter worth about $251,000. Sivia Capital Partners LLC increased its stake in Arista Networks by 48.4% during the 2nd quarter. Sivia Capital Partners LLC now owns 10,723 shares of the technology company’s stock valued at $1,097,000 after purchasing an additional 3,496 shares in the last quarter. Finally, Gamco Investors INC. ET AL increased its stake in Arista Networks by 31.3% during the 2nd quarter. Gamco Investors INC. ET AL now owns 4,193 shares of the technology company’s stock valued at $429,000 after purchasing an additional 1,000 shares in the last quarter. Hedge funds and other institutional investors own 82.47% of the company’s stock.
Key Headlines Impacting Arista Networks Here are the key news stories impacting Arista Networks this week:
Positive Sentiment: Arista’s leadership in high-speed networking for cloud and AI infrastructure is highlighted as a key advantage over Salesforce, reinforcing the company’s long-term growth profile. Arista Networks vs. Salesforce: Which Technology Stock Is a Better Buy in 2026? Positive Sentiment: ANET was included among high-return-on-equity, cash-rich stocks that may appeal to investors seeking quality during volatile markets. Arista’s reported return on equity was approximately 31%. 5 High ROE Stocks to Buy as Markets Sway on Intense Volatility Positive Sentiment: Arista has nearly tripled multiyear purchase commitments to roughly $9.7 billion, suggesting management is securing components in anticipation of sustained AI and cloud demand. The spending also signals confidence in a sizable future order pipeline, though it raises execution and inventory risks. Can ANET Stock Compound Its Way Higher? Positive Sentiment: Arista’s second-quarter performance was presented as strong enough to support a higher price target. The company recently beat consensus earnings and revenue estimates and issued third-quarter EPS guidance of $1.06 to $1.08. Arista Networks: Q2 2026 Justifies A Higher Price Target Neutral Sentiment: Compared with CoreWeave, Arista generates substantially more revenue and has delivered steadier quarter-over-quarter growth, while CoreWeave is expanding faster. The comparison supports Arista’s scale but highlights increasing competition in AI infrastructure. Arista Networks vs. CoreWeave: What Revenue Trends Tell Investors About These Artificial Intelligence Companies Negative Sentiment: At an elevated valuation, investors are paying for continued rapid growth. Arista’s future margins could depend heavily on the mix and profitability of customers behind its large capacity commitments. What You Are Really Paying For In Arista Networks Stock Wall Street Analysts Forecast Growth Several brokerages have recently issued reports on ANET. The Goldman Sachs Group reiterated a “buy” rating and issued a $225.00 target price on shares of Arista Networks in a research note on Wednesday, August 5th. KeyCorp reissued an “overweight” rating and set a $250.00 price target (up from $200.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Erste Group Bank upgraded shares of Arista Networks from a “hold” rating to a “buy” rating in a report on Wednesday, July 15th. Morgan Stanley reaffirmed an “overweight” rating and issued a $220.00 price objective (up from $190.00) on shares of Arista Networks in a research report on Wednesday, August 5th. Finally, Wolfe Research reiterated an “outperform” rating and set a $175.00 target price on shares of Arista Networks in a research note on Wednesday, June 10th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $226.05. Read Our Latest Stock Report on ANET
Insider Activity at Arista Networks In other news, major shareholder Andreas Bechtolsheim sold 111,848 shares of the firm’s stock in a transaction on Thursday, August 6th. The stock was sold at an average price of $192.75, for a total value of $21,558,702.00. Following the transaction, the insider directly owned 109,833 shares in the company, valued at $21,170,310.75. This trade represents a 50.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Kenneth Duda sold 26,000 shares of Arista Networks stock in a transaction on Monday, July 20th. The stock was sold at an average price of $170.51, for a total value of $4,433,260.00. Following the completion of the sale, the insider directly owned 462,400 shares of the company’s stock, valued at $78,843,824. The trade was a 5.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 4,128,775 shares of company stock worth $767,332,289. Company insiders own 2.70% of the company’s stock.
Arista Networks Stock Up 0.3% Shares of NYSE ANET opened at $189.15 on Monday. The firm’s 50-day moving average price is $177.57 and its 200-day moving average price is $156.40. The company has a market cap of $238.56 billion, a PE ratio of 59.67, a PEG ratio of 1.95 and a beta of 1.60. Arista Networks, Inc. has a 52-week low of $114.52 and a 52-week high of $214.89.
Arista Networks (NYSE:ANET – Get Free Report) last released its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 earnings per share for the quarter, beating the consensus estimate of $0.89 by $0.13. The firm had revenue of $3.04 billion during the quarter, compared to analysts’ expectations of $2.83 billion. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm’s quarterly revenue was up 37.7% on a year-over-year basis. During the same period in the previous year, the company earned $0.73 earnings per share. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. As a group, equities research analysts anticipate that Arista Networks, Inc. will post 3.7 EPS for the current fiscal year.
(Free Report)
Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.
Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.
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Arista těží z růstu datových center pro AI a počet zákazníků Etherlink přesáhl 100. Firma čeká, že trh Scale-Across switching a routing dosáhne do roku 2030 na 15–20 miliard USD.
Key Takeaways ANET is benefiting from AI infrastructure growth, with cumulative Etherlink customers now topping 100.Diverse accelerators and AI architectures are expanding ANET's addressable networking opportunity.ANET sees Scale-Across switching and routing TAM reaching $15-20B by 2030, expanding its AI opportunity. Arista Networks, Inc. (ANET - Free Report) is benefiting from the rapid expansion of AI data-center infrastructure. AI workloads require very large numbers of GPUs to communicate with each other at high speed. As AI clusters are becoming larger to cater to surging AI workloads, the networking infrastructure connecting these processors also needs to become faster and more reliable.
Arista’s comprehensive Etherlink AI fabric portfolio is gaining from these evolving trends. The company recently disclosed that the number of cumulative Etherlink customers has grown to more than 100 compared with only four or five customers in 2024. As AI infrastructure becomes more complex, customers increasingly need networking capabilities such as traffic engineering, low latency, reliability and security. These factors are driving demand for Arista’s EOS operating system.
ANET is expanding beyond a single accelerator ecosystem. The company currently uses a high percentage of NVIDIA GPUs. However, the company is exploring other options such as AMD's MI-series accelerators, Google's TPUs and various inference accelerators. Different accelerators and AI architectures can require different networking configurations. The growing diversity of AI accelerators and AI architectures is expanding Arista's addressable networking opportunity.
AI infrastructure is increasingly being distributed across multiple locations. Customers are facing constraints related to power, physical space and compute capacity. Arista’s 7800 platform is designed to support such distributed AI environments by providing high-capacity switching and routing capabilities. The company is expanding its portfolio to address issues at scale across networking architecture. The company estimates the Scale-Across switching and routing market could reach $15-$20 billion by 2030. The use case is expected to represent roughly 30% of its overall AI target of at least $3.6 billion in 2026.
How Are Competitors Faring?Arista faces competition from Cisco Systems (CSCO - Free Report) and Hewlett Packard Enterprise (HPE - Free Report) in the AI networking space. Cisco closed fiscal 2026 with $9.3 billion in hyperscaler AI infrastructure orders, about 4.5 times fiscal 2025, and roughly $4 billion in related revenues. Management expects hyperscaler AI revenues to reach $7.5 billion in fiscal 2027. Cisco continues to expand AI data center offerings, including Nexus innovations to capture greater market share.
The acquisition of Juniper Networks is reshaping HPE’s mix by expanding its portfolio across campus and branch, data center switching, routing and security. In the second quarter of fiscal 2026, management highlighted that Juniper integration milestones and committed synergies are running ahead of schedule, and the combined go-to-market is already improving share of wallet with enterprise and service provider customers. HPE also launched new autonomous, agentic AI operations capabilities and raised its cumulative Networks for AI order target to at least $2 billion by the end of fiscal 2026, reflecting confidence in AI-driven demand for high-performance networking.
ANET’s Price Performance, Valuation & EstimatesShares of Arista have gained 43.4% over the past year against the industry’s decline of 13.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 16.93, above the industry average of 8.75.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 11.29% to $4.04 over the past 60 days, while the same for 2027 has also increased 13.7% to $4.98.
Image Source: Zacks Investment Research
Arista currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Bellars Harris Wealth Management koupila ve 2. čtvrtletí novou pozici v Arista Networks: 32 869 akcií za zhruba 5,584 milionu USD. Arista zároveň oznámila za čtvrtletí EPS 1,02 USD a tržby 3,04 miliardy USD.
Bellars Harris Wealth Management LLC purchased a new position in Arista Networks, Inc. (NYSE:ANET – Free Report) during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The fund purchased 32,869 shares of the technology company’s stock, valued at approximately $5,584,000.
Several other hedge funds and other institutional investors have also recently bought and sold shares of the stock. Lighthouse Financial Services Inc. ADV bought a new stake in shares of Arista Networks in the fourth quarter worth about $1,549,000. Bensler LLC bought a new stake in shares of Arista Networks in the 4th quarter worth approximately $6,350,000. QRG Capital Management Inc. increased its stake in shares of Arista Networks by 6.4% during the fourth quarter. QRG Capital Management Inc. now owns 169,613 shares of the technology company’s stock valued at $22,224,000 after buying an additional 10,217 shares during the period. Jefferies Financial Group Inc. increased its stake in shares of Arista Networks by 59.8% during the fourth quarter. Jefferies Financial Group Inc. now owns 17,621 shares of the technology company’s stock valued at $2,309,000 after buying an additional 6,591 shares during the period. Finally, Reaves W H & Co. Inc. bought a new position in shares of Arista Networks during the fourth quarter valued at approximately $3,058,000. Institutional investors own 82.47% of the company’s stock.
Arista Networks Stock Up 1.6% Shares of ANET stock opened at $202.05 on Tuesday. The business’s fifty day moving average is $175.00 and its 200 day moving average is $155.18. The stock has a market cap of $254.83 billion, a price-to-earnings ratio of 63.74, a PEG ratio of 2.06 and a beta of 1.60. Arista Networks, Inc. has a twelve month low of $114.52 and a twelve month high of $214.89.
Arista Networks (NYSE:ANET – Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The technology company reported $1.02 EPS for the quarter, beating the consensus estimate of $0.89 by $0.13. Arista Networks had a return on equity of 30.65% and a net margin of 38.37%.The business had revenue of $3.04 billion during the quarter, compared to analyst estimates of $2.83 billion. During the same quarter last year, the firm posted $0.73 earnings per share. The company’s revenue for the quarter was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. Equities research analysts expect that Arista Networks, Inc. will post 3.7 earnings per share for the current fiscal year. Wall Street Analyst Weigh In A number of research analysts have issued reports on ANET shares. Citigroup reissued a “buy” rating on shares of Arista Networks in a research report on Thursday, August 6th. Truist Financial raised their target price on shares of Arista Networks from $175.00 to $234.00 and gave the stock a “buy” rating in a research report on Wednesday, August 5th. Weiss Ratings lowered shares of Arista Networks from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 12th. Wolfe Research reiterated an “outperform” rating and set a $175.00 price target on shares of Arista Networks in a research report on Wednesday, June 10th. Finally, The Goldman Sachs Group reissued a “buy” rating and issued a $225.00 price target on shares of Arista Networks in a research note on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating and one has assigned a Hold rating to the company. According to MarketBeat, Arista Networks presently has a consensus rating of “Buy” and a consensus target price of $226.05.
View Our Latest Research Report on Arista Networks
Insider Activity In other Arista Networks news, CEO Jayshree Ullal sold 767,029 shares of the company’s stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $201.22, for a total value of $154,341,575.38. Following the sale, the chief executive officer owned 16,387,981 shares in the company, valued at approximately $3,297,589,536.82. This represents a 4.47% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, major shareholder Andreas Bechtolsheim sold 300,000 shares of the firm’s stock in a transaction that occurred on Wednesday, August 5th. The shares were sold at an average price of $203.30, for a total transaction of $60,990,000.00. Following the transaction, the insider directly owned 181,143,048 shares of the company’s stock, valued at $36,826,381,658.40. This represents a 0.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 4,335,168 shares of company stock valued at $798,637,629. 2.70% of the stock is owned by company insiders.
Arista Networks Company Profile (Free Report)
Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.
Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.
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Odhady zisku Arista Networks pro roky 2026 a 2027 za posledních sedm dní vzrostly o 2,2 % a 3 %. Tržby ve 2. čtvrtletí meziročně vyskočily o 37,7 % díky AI, cloudu a poptávce podniků.
Key Takeaways Arista's 2026 and 2027 earnings estimates rose 2.2% and 3%, respectively, over the past seven days.Arista's Q2 revenues jumped 37.7% year over year, driven by AI, cloud and enterprise demand.ANET's Arista 2.0 strategy targets core innovation, SaaS expansion and entry into adjacent markets. Earnings estimates for Arista Networks, Inc. (ANET - Free Report) for 2026 and 2027 have moved up 2.2% to $3.72 and 3% to $4.52, respectively, over the past seven days. The positive estimate revisions depict bullish sentiments about the stock’s growth potential.
Image Source: Zacks Investment Research
Solid Q2 Results Buoy ANETArista reported strong second-quarter 2026 results with both adjusted earnings and revenues beating the Zacks Consensus Estimate. The company posted a strong 37.7% year-over-year revenue increase, reflecting broad-based growth across its artificial intelligence (AI), cloud and enterprise networking businesses, supported by healthy customer demand and improved product availability.
On a non-GAAP basis, net income improved to $1.3 billion or $1.02 per share from $934.2 million or 73 cents per share in the year-earlier quarter. The bottom line beat the Zacks Consensus Estimate of 89 cents. Quarterly revenues increased to $3.04 billion from $2.2 billion in the prior-year quarter, mainly due to solid growth in both Product and Service segments. The top line beat the consensus estimate of $2.83 billion.
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Arista 2.0 Strategy Lends SupportThe company is gaining healthy momentum as the Arista 2.0 strategy is resonating well with customers. The strategy comprises three components that are likely to drive growth over the next few years. The first involves plans to invest in core businesses by rolling out new solutions and improved AI offerings. Secondly, Arista aims to emphasize software-as-a-service for improved revenue visibility. Last but not least, the company plans to enter adjacent markets to target a broader customer base.
Arista is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. The versatility of its unified software stack across various use cases, including WAN routing and campus and data center infrastructure, sets it apart from other competitors in the industry. This has translated into solid revenue growth for the company over the years.
The company offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency. The company also innovates in areas such as deep packet buffers, embedded optics and reversible cooling. Arista holds a leadership position in 100-gigabit Ethernet switches for the high-speed data center segment and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products.
CloudEOS Edge: ANET’s X-Factor?Arista continues to benefit from the expanding cloud networking market, which is driven by a strong demand for scalable infrastructure. As more business enterprises transition to the cloud, the company is poised for growth in the data-driven cloud networking business with proactive platforms and predictive operations. In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration.
With customers deploying transformative cloud networking solutions, the company has announced several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services for video conferencing applications such as Microsoft Teams and Zoom. This highly scalable, software-driven routing solution enables seamless connectivity between enterprise IT infrastructure, public cloud networks and service provider edges. It extends Arista’s core EOS capabilities beyond traditional data centers to multi-cloud environments, metro-edge deployments and 5G network boundaries.
Price PerformanceArista has surged 37.1% over the past year against the industry’s decline of 13.6%. It has, however, lagged peers like Hewlett Packard Enterprise Company (HPE - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . While Cisco has gained 71.8%, Hewlett Packard is up 158.5% over this period.
One-Year ANET Stock Price Performance
Image Source: Zacks Investment Research
End NoteWith healthy revenue-generating potential driven by steady demand trends, Arista appears poised for solid growth momentum. A strong emphasis on quality, diligent execution of operational plans and continuous portfolio enhancements are driving more value for customers. An uptrend in estimate revision further portrays positive investor sentiments.
The stock delivered a trailing four-quarter average earnings surprise of 8.9%. Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Riding on a robust earnings surprise history and favorable Zacks Rank, it appears primed for further price appreciation. Consequently, investors are likely to profit if they bet on this high-flying stock.
Arista Networks ve fiskálním 2. čtvrtletí překonala odhady tržeb o 7,5 % a EPS o 15 %. Akcie se přesto obchodují zhruba za 50násobek forwardového zisku.
SummaryArista Networks, Inc. delivered another strong quarter, beating revenue by 7.5% and EPS by 15%.ANET is a prime beneficiary of the ongoing AI-driven capital expenditure surge among hyperscalers.Despite consistent outperformance, ANET stock trades at ~50x forward earnings, reflecting high expectations for future growth.I remain neutral on ANET, as exceptional results and growth are already priced into the stock's current valuation.Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More » Sundry Photography/iStock Editorial via Getty Images
Article Thesis Arista Networks, Inc. (ANET) reported strong results for its fiscal second quarter. The company is a big beneficiary of the ongoing AI capital expenditures boom, and as long as hyperscalers
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Arista Networks oznámila rekordní tržby za 2. čtvrtletí 2026 ve výši 3,04 mld. USD, meziročně o 37,7 %, a non-GAAP EPS 1,02 USD. Firma zároveň očekává v roce 2026 nejméně 3,6 mld. USD výnosů z AI.
Key Takeaways ANET topped 100 cumulative AI fabric customers and expects at least $3.6B in AI revenue in 2026. Arista Networks reported record Q2 2026 revenue of $3.04B and non-GAAP EPS of $1.02. ANET is expanding beyond cloud switching through enterprise networking, routing and software offerings. Arista Networks (ANET - Free Report) has surged 30.1% over the past three months, reflecting growing investor confidence in the company's expanding role in AI networking. The rally has been supported by another quarter of stronger-than-expected financial results, accelerating AI infrastructure demand and continued expansion beyond its traditional cloud switching business. The key question for investors is whether these fundamentals can continue supporting further gains or whether much of the optimism has already been priced into the stock.
What Is Fueling ANET's AI Networking Story?AI networking remains Arista's biggest growth driver. Management said AI fabric momentum has expanded dramatically, with cumulative AI fabric customers surpassing 100 compared with only four to five customers in 2024. The company expects AI-related revenue to reach at least $3.6 billion in 2026 as hyperscalers and enterprises continue building large-scale AI clusters.
To strengthen its position, Arista recently introduced new Etherlink AI fabric platforms featuring 1.6-terabit technology, including liquid-cooled options designed for next-generation AI deployments. The company also highlighted innovations such as Multipath Reliable Connection (MRC), Smart System Upgrade (SSU) and Segment Routing over IPv6 (SRv6), which improve utilization, resiliency and efficiency across AI clusters. These capabilities expand Arista's opportunity beyond traditional scale-out networking into scale-across AI architectures, a market management believes could represent a $15-$20 billion opportunity by 2030.
How Arista Is Expanding Beyond Cloud SwitchingAlthough AI has attracted most investor attention, Arista continues diversifying its business across enterprise networking. The company has steadily expanded into campus networking, routing, cloud automation and software through its Extensible Operating System (EOS) and CloudVision platform. EOS remains a major competitive differentiator because it provides a unified, programmable operating system spanning data centers, campus networks and AI infrastructure. This software-centric architecture simplifies network management while supporting automation, security and scalability across customer environments.
Arista also competes with networking leader Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) in AI networking. Cisco is expanding its AI infrastructure offerings through its enterprise networking portfolio, while NVIDIA continues to strengthen its AI networking business with high-performance Ethernet and InfiniBand technologies. Arista has differentiated itself through its software-driven EOS architecture, growing AI Ethernet leadership and increasing exposure to hyperscale AI deployments, positioning the company well in the rapidly expanding AI networking market.
The strategy is producing broader adoption outside hyperscale cloud customers. During the quarter, Arista highlighted recognition as a Leader in Gartner's 2026 Magic Quadrant for Enterprise Wired and Wireless LAN, reflecting continued traction in campus networking. Enterprise, routing and software offerings provide additional growth avenues while reducing dependence on any single product category over the long run.
Can Strong Financial Momentum Continue?Recent operating performance suggests business momentum remains robust. Second-quarter 2026 revenue increased 37.7% year over year to a record $3.04 billion, while non-GAAP EPS climbed nearly 40% to $1.02, exceeding the Zacks Consensus Estimate. Product revenue remained the primary growth engine as AI, cloud and enterprise demand accelerated.
Profitability also remains impressive. The company generated a non-GAAP operating margin of 49.9% despite continued investment in research and development. Management expects third-quarter revenue of approximately $3.3 billion while projecting non-GAAP operating margins between 48% and 49%, indicating confidence that demand remains healthy.
Image Source: Zacks Investment Research
The balance sheet also remains a significant strength. As of June 30, 2026, Arista held more than $13 billion in cash, cash equivalents and marketable securities, providing ample financial flexibility for future investment and innovation.
What Could Slow ANET After a Strong Run?Despite its strong outlook, several risks could limit additional upside. Competition remains intense across AI Ethernet networking, cloud switching and routing, with large networking vendors and emerging AI infrastructure providers pursuing the same high-growth opportunities.
Customer concentration also remains an important consideration, as a meaningful portion of revenue continues to come from a relatively small number of large cloud customers. Any reduction in capital spending from hyperscalers could create revenue volatility.
Execution risks also remain. AI deployments require timely product availability, efficient supply-chain management and continued technology leadership. In addition, if AI infrastructure spending moderates after the current investment cycle or customer deployments are delayed, revenue growth could slow from its current pace.
How the Zacks Signals Fit the StoryANET currently carries a Zacks Rank #2 (Buy), reflecting favorable earnings estimate trends. The stock also has a Growth Score of A, highlighting its strong earnings and revenue expansion prospects. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Its Momentum Score of C suggests that while the shares have appreciated significantly, momentum characteristics appear more balanced following the recent rally. Meanwhile, the Value Score of F indicates that investors are paying a premium valuation for the company's growth prospects, an unsurprising outcome given the stock's sharp advance and leadership position in AI networking. The VGM Score of C reflects a blend of outstanding growth characteristics offset by a rich valuation and more moderate momentum profile. Together, these signals suggest Arista remains an attractive growth story, although investors should recognize that much of its near-term upside depends on the company continuing to deliver exceptional execution to justify its premium valuation.
Key Takeaways Arista Networks launched new AI networking platforms for larger, more efficient AI clusters. Arista Networks expects at least $3.6 billion in 2026 AI revenue as Ethernet AI adoption expands. Arista Networks says AI fabric customers now exceed 100 and is expanding into scale-across AI networking. Arista Networks (ANET - Free Report) recently unveiled a new generation of AI networking platforms aimed at supporting increasingly complex AI infrastructure. The launch builds on the company's growing AI networking franchise and reflects its strategy of delivering high-performance Ethernet solutions that span scale-up, scale-out and scale-across AI deployments. While the new products expand Arista's long-term addressable market, investors will be watching customer adoption and execution to determine whether the company's AI momentum can continue.
How the New ANET Platform Targets AI ClustersArista's latest product introductions are designed to address the networking requirements of next-generation AI clusters. The company introduced the 7060XE7 Series, a family of 1.6-terabit Etherlink AI fabric platforms capable of delivering up to 100 terabits per second of system bandwidth. The new portfolio also includes liquid-cooled options, helping customers improve power efficiency while supporting larger AI deployments. According to management, the platforms are optimized for scale-up, scale-out and scale-across AI networking architectures, enabling customers to build increasingly powerful AI infrastructure while reducing networking bottlenecks.
Management also highlighted the company's flagship 7800 AI Spine platform, which enables customers to scale AI networks without adding additional networking tiers. These capabilities position Arista to support both traditional AI training clusters and geographically distributed AI environments.
Why Ethernet AI Matters for AristaEthernet continues gaining traction as AI networking architectures evolve, creating a significant opportunity for Arista. The company expects AI-related revenue of at least $3.6 billion in 2026, supported by expanding adoption of Ethernet-based AI fabrics. Management noted that cumulative AI fabric customers now exceed 100, up from only four to five customers in 2024, highlighting the rapid pace of adoption.
Beyond traditional scale-out networking, Arista is expanding into scale-across AI networking, which connects geographically distributed AI clusters. Management estimates this market could reach $15-$20 billion by 2030, with scale-across representing roughly 30% of the company's targeted AI revenue opportunity in 2026. This broadens Arista's addressable market while reinforcing Ethernet's growing role in AI infrastructure.
How Software Strengthens the AI OfferingHardware innovation is only part of Arista's AI strategy. The company's Extensible Operating System (EOS) provides a unified software platform across AI fabrics, cloud data centers and enterprise networks, helping customers simplify operations while improving scalability. During the earnings call, management highlighted several software innovations that differentiate its AI networking platform.
Smart System Upgrade (SSU) enables software upgrades without disrupting network operations, an important capability for AI clusters that require maximum uptime. Multipath Reliable Connection (MRC) improves AI training efficiency by allowing data flows to use multiple network paths simultaneously, while Segment Routing over IPv6 (SRv6) dynamically redirects traffic to avoid congestion and maximize network utilization. Combined with EOS automation and programmability, these technologies help improve AI cluster performance and operational efficiency.
What Investors Should Watch NextThe success of Arista's latest AI platforms will ultimately depend on customer adoption and execution. Investors should monitor the pace of AI platform deployments, expansion of the AI fabric customer base and management's ability to convert design wins into sustained revenue growth. Manufacturing readiness, supply-chain execution and timely product deliveries will also remain important as customers continue investing heavily in AI infrastructure.
Competition remains another key consideration. Arista competes with established networking vendors such as Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) , both of which are investing heavily in AI networking technologies. Cisco is expanding its Ethernet-based AI infrastructure portfolio, while NVIDIA continues strengthening its high-performance networking offerings for AI data centers. Continued product innovation and software differentiation will therefore be essential for Arista to maintain its leadership position in Ethernet-based AI networking.
How the Zacks Signals Frame the OpportunityANET currently carries a Zacks Rank #2 (Buy), reflecting favorable earnings estimate revisions following the company's strong operating performance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The stock also has a Growth Score of A, underscoring its robust earnings and revenue expansion prospects driven by AI networking demand. At the same time, its Value Score of F indicates that investors are assigning a premium valuation to those growth opportunities. Meanwhile, the Momentum Score of C suggests more balanced trading characteristics after the recent rally, while the VGM Score of C reflects an overall balanced profile. Together, these signals reinforce that Arista remains a compelling AI growth story, although continued execution will be critical to justify its premium valuation.
Arista Networks klesla během poledního obchodování o 2,5 % poté, co ředitel Charles H. Giancarlo prodal 8 000 akcií v rámci předem připraveného plánu 10b5-1.
Arista Networks, Inc. (NYSE:ANET – Get Free Report)’s stock price was down 2.5% during mid-day trading on Thursday after an insider sold shares in the company. The stock traded as low as $189.43 and last traded at $192.4720. Approximately 7,738,556 shares traded hands during trading, a decline of 11% from the average daily volume of 8,684,199 shares. The stock had previously closed at $197.31.
Specifically, Director Charles H. Giancarlo sold 8,000 shares of Arista Networks stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $181.02, for a total transaction of $1,448,160.00. Following the completion of the sale, the director owned 184,333 shares of the company’s stock, valued at $33,367,959.66. The trade was a 4.16% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Analyst Ratings Changes ANET has been the topic of several recent research reports. Needham & Company LLC reiterated a “buy” rating and set a $260.00 price objective (up from $200.00) on shares of Arista Networks in a research report on Wednesday. The Goldman Sachs Group restated a “buy” rating and issued a $225.00 target price on shares of Arista Networks in a research report on Wednesday. Erste Group Bank raised Arista Networks from a “hold” rating to a “buy” rating in a research note on Wednesday, July 15th. Citigroup reiterated a “buy” rating on shares of Arista Networks in a research report on Thursday. Finally, Barclays reissued an “overweight” rating and set a $289.00 price target (up from $195.00) on shares of Arista Networks in a research note on Wednesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average price target of $226.05.
Check Out Our Latest Analysis on Arista Networks
Arista Networks News Roundup Here are the key news stories impacting Arista Networks this week:
Positive Sentiment: Record earnings beat expectations: Arista reported second-quarter adjusted EPS of $1.02, above the $0.89 consensus estimate, while revenue increased 37.7% year over year to $3.04 billion, exceeding the $2.83 billion forecast. It was the company’s first quarter with revenue above $3 billion. Arista Books Its First $3 Billion Quarter Positive Sentiment: AI networking demand remains strong: Hyperscaler and cloud customers continue expanding data-center infrastructure for artificial intelligence, supporting demand for Arista’s switching and routing products. The company also introduced 1.6-terabit platforms aimed at high-performance AI workloads. Why Arista Networks Stock Rallied Today Positive Sentiment: Guidance and analyst support improved: Arista projected roughly $3.3 billion of third-quarter revenue and $1.06–$1.08 of EPS, while raising its 2026 revenue outlook to $12.6 billion as supply availability improves. Rosenblatt reiterated a Buy rating and raised its target to $280; TD Cowen, Piper Sandler and Truist also increased targets. Arista projects $12.6 billion 2026 revenue Neutral Sentiment: Insider selling: Director Charles Giancarlo sold 8,000 shares worth approximately $1.45 million under a pre-arranged Rule 10b5-1 plan. He retained 184,333 shares, reducing the significance of the transaction. SEC insider transaction filing Negative Sentiment: Valuation and margin concerns: Following a major AI-related rally, ANET trades at an elevated earnings multiple. Gross margin declined to 63.4% from 65.6% a year earlier, and investors remain sensitive to any slowdown in AI spending, supply constraints or signs that growth expectations are excessive. Arista Networks Stock Down 2.5% The stock has a market cap of $242.36 billion, a P/E ratio of 60.72, a P/E/G ratio of 3.03 and a beta of 1.60. The company has a 50-day simple moving average of $170.30 and a two-hundred day simple moving average of $152.07.
Arista Networks (NYSE:ANET – Get Free Report) last issued its earnings results on Tuesday, August 4th. The technology company reported $1.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.13. Arista Networks had a net margin of 38.37% and a return on equity of 30.65%. The firm had revenue of $3.04 billion for the quarter, compared to analysts’ expectations of $2.83 billion. During the same quarter last year, the business earned $0.73 earnings per share. The business’s revenue was up 37.7% on a year-over-year basis. Arista Networks has set its Q3 2026 guidance at 1.060-1.080 EPS. As a group, sell-side analysts forecast that Arista Networks, Inc. will post 3.28 earnings per share for the current fiscal year.
Institutional Investors Weigh In On Arista Networks Large investors have recently added to or reduced their stakes in the company. Main Street Group LTD bought a new stake in shares of Arista Networks in the first quarter worth about $26,000. Sankala Group LLC purchased a new position in Arista Networks during the 4th quarter valued at about $27,000. Prosperity Bancshares Inc bought a new position in Arista Networks during the 4th quarter valued at approximately $28,000. Hilton Head Capital Partners LLC lifted its holdings in Arista Networks by 184.9% in the 1st quarter. Hilton Head Capital Partners LLC now owns 245 shares of the technology company’s stock worth $30,000 after buying an additional 159 shares during the period. Finally, NBT Bank N A NY lifted its holdings in Arista Networks by 37.2% in the 1st quarter. NBT Bank N A NY now owns 247 shares of the technology company’s stock worth $30,000 after buying an additional 67 shares during the period. Institutional investors own 82.47% of the company’s stock.
About Arista Networks (Get Free Report)
Arista Networks, Inc is a technology company that designs and sells cloud networking solutions for large-scale data centers and enterprise environments. The company is best known for its high-performance switching and routing platforms, which are used to build scalable, low-latency networks for cloud service providers, internet companies, financial services, telecommunications, and enterprise IT. Arista’s offerings emphasize programmability, automation and telemetry to support modern, software-driven network architectures.
Central to Arista’s product portfolio is its Extensible Operating System (EOS), a modular network operating system that provides consistent programmability, stateful control and advanced visibility across the company’s hardware platforms.
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Arista Networks zvýšila výhled tržeb na rok 2026 na zhruba 12,6 miliardy USD, tedy o 40 %, už potřetí letos. Pomáhají jí lepší dodávky součástek a vyšší objem zásilek.
Key Takeaways Arista now expects 2026 revenues of about $12.6B, up 40%, after its third outlook raise.Added suppliers and capacity lifted shipments, while purchase commitments rose to $9.7B.Etherlink customers topped 100 as 1.6-terabit platforms enter trials before a 2027 production ramp. Arista Networks, Inc. (ANET - Free Report) used its second-quarter call to emphasize that improved component access is converting strong demand into higher shipments across artificial intelligence (AI), data center, campus and routing.
Management raised its 2026 revenue outlook for the third time this year, while focusing on execution, customer mix and demand beyond AI fabrics.
ANET Raises Its 2026 Revenue OutlookChairperson and chief executive officer Jayshree Ullal said Arista now expects 2026 revenues of approximately $12.6 billion, representing 40% growth. The outlook is $1.1 billion above the May projection and $2.1 billion above the prior Analyst Day goal.
Chief financial officer Chantelle Breithaupt guided third-quarter revenues to approximately $3.3 billion, with a non-GAAP operating margin of 48% to 49% and non-GAAP earnings of $1.06 to $1.08 per share.
Second-quarter revenues reached $3.04 billion, ahead of the Zacks Consensus Estimate of $2.83 billion and up 37.7% year over year. Non-GAAP earnings rose 39.7% to $1.02 per share, beating the consensus estimate of $0.89.
Arista Expands Supply CommitmentsPresident and chief operating officer Todd Nightingale said the company added suppliers, improved delivery terms and expanded manufacturing and distribution capacity. Arista now works with three contract manufacturers and three distribution facilities across the United States, Asia and Mexico.
Management secured memory supply for 2026 and extended visibility into 2027 across DDR4, DDR5 and NAND. It also established a liquid-cooling supply chain for next-generation AI systems.
Purchase commitments rose to $9.7 billion from $8.9 billion in the first quarter and about $3.6 billion a year earlier. Ullal cautioned that industry constraints could persist until 2028, despite Arista's progress.
ANET Builds Out Its AI Fabric AdvantageUllal said cumulative Etherlink customers now exceed 100, up from four to five customers discussed in 2024. The company is extending its portfolio with the 7060XE7, which supports 1.6-terabit throughput, 100 terabits of system capacity and liquid-cooling options.
Co-founder, President and chief technology officer Kenneth Duda highlighted Smart System Upgrade, Multipath Reliable Connection and SRv6-based routing. Management framed those capabilities as tools to reduce downtime, avoid congestion and improve accelerator utilization.
Arista expects 1.6-terabit platforms to remain in trials during the second half of 2026, with production ramping in 2027. Ullal said initial evaluations involve a small number of large customers.
Arista Sees Broader Growth Beyond AIA UBS analyst questioned why the higher annual outlook did not include a larger stated AI or campus target. Ullal responded that all product sectors should grow, while management retains flexibility to prioritize shipments based on supply.
A Raymond James analyst pressed on the incremental $1.1 billion. Ullal pointed to core data center front-end systems, enterprise demand, routing, campus and AI as contributors.
Breithaupt also cited new customer wins, international expansion and land-and-expand activity between campus and data center deployments. The guidance increase was broader than a single product cycle.
ANET Defends Its System-Level ApproachAn Evercore ISI analyst asked whether rising AI-network complexity strengthens integrated systems relative to white-box alternatives. Ullal said simple deployments can still use lower-cost white-box equipment, but larger scale-out and scale-across networks require more software, reliability and traffic engineering.
A Morgan Stanley analyst asked why newer cloud operators choose Arista's blue-box systems. Ullal emphasized operating efficiency, EOS feature depth and reliability, while acknowledging that large customers with extensive engineering staffs may continue using white-box products.
A Wells Fargo analyst asked about customer concentration. Ullal said Microsoft and Meta remain key partners and expects one, and potentially two, customers to represent at least 10% of revenue as shipments scale.
Arista Keeps Execution at the CenterManagement's tone remained confident on demand but measured on supply. Breithaupt said customer visibility remains about two quarters and the annual outlook reflects supply the company is confident it can secure.
The call left Arista focused on converting commitments into shipments, scaling new AI platforms and broadening growth across established networking categories without relaxing operating discipline.
Zacks Signals Show Mixed Style SupportANET carries a Zacks Rank #2 (Buy), a favorable indicator tied to earnings-estimate revisions over the next one to three months. Its Growth Score of A is the strongest style signal, while the Value Score of F and Momentum Score of D indicate weaker positioning on those dimensions.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The VGM Score of C shows a middle-range combined profile rather than the A or B scores that pair most strongly with a top Zacks Rank. The Zacks Rank can change as analysts revise estimates following the newly reported results.
Arista Networks čeká ve 3. čtvrtletí tržby 3,3 miliardy USD, nad odhadem Wall Street, díky silné poptávce po síťovém vybavení pro AI infrastrukturu. Akcie po uzavření trhu stouply o 3 %.
The Arista logo is seen in this illustration taken August 3, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
Aug 4 (Reuters) - Arista Networks (ANET.N), opens new tab forecast third-quarter revenue above Wall Street estimates on Tuesday, betting on strong demand for its networking gear as companies expand their AI infrastructure.
The company has been expanding beyond its core cloud customer base into enterprise campus and branch networking to diversify its revenue.
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Here are some details:
Shares were up 3% after the bell.
Arista, which makes the high-speed computer networking equipment that powers big data centers for customers like Microsoft and Amazon, forecast third-quarter revenue of $3.3 billion, above analysts' average estimate of $2.94 billion, according to LSEG data.
The company also beat second-quarter expectations, posting revenue of $3.04 billion and adjusted earnings per share of $1.02, above analysts' estimate of $2.82 billion and 88 cents per share, respectively
It forecast third-quarter adjusted earnings per share in the range of $1.06 to $1.08, also above estimate of 91 cents.
Reporting by Nithyashree R B in Bengaluru; Editing by Sriraj Kalluvila
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Arista Networks ve 2. čtvrtletí zvýšila tržby na 3,04 miliardy USD a EPS na 1,02 USD, obojí nad odhady. Po výsledcích akcie v after-hours vyskočily o 7,68 %.
Arista Networks (NYSEANET) beat analyst estimates for second-quarter financial results Tuesday after market close.
• Arista Networks stock is at critical resistance. What’s driving ANET to record levels?
Here are the key highlights.
Arista Networks Q2 EarningsArista Networks reported second-quarter revenue of $3.04 billion, up 37.7% year-over-year. The revenue total beat a Street consensus estimate of $2.82 billion, according to data from Benzinga Pro.
This marked the first $3 billion or more revenue quarter for the company in history.
Earnings per share for the quarter were $1.02, beating a Street consensus estimate of 89 cents per share.
"Our second quarter 2026 reflects strong, broad-based growth, with revenue up 37.7% and EPS up 39.7%. This performance underscores the strength of our market position and the continued dedication of our global team," Arista Chief Financial Officer Chantelle Breithaupt said.
What’s Next for AristaThe company recently introduced 1.6 Tbps AI fabric platforms, optimized for "scale-up, scale-out, and scale-across networks."
"As we deliver our first $3 billion quarter in Q2 2026, it is clear that our Arista 2.0 platform strategy is compelling," Arista Networks CEO Jayshree Ullal said. "Customers see networking as the central nervous system for infrastructure from the client to campus to data and AI centers."
Guidance from Arista calls for third-quarter revenue of $3.3 billion, higher than a Street estimate of $2.94 billion, according to Benzinga Pro.
The company expects third-quarter adjusted EPS in a range of $1.06 to $1.08, versus a Street estimate of 91 cents per share.
Arista Stock Price ActionArista stock is up 7.68% to $205.51 in after-hours trading Tuesday versus a 52-week trading range of $114.52 to $194.35. The stock is at all-time highs in after-hours trading and looks to maintain the momentum heading into Wednesday.
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Akcie Arista Networks v první polovině roku 2026 vzrostly o 29,6 % díky dvěma silným čtvrtletím a rostoucí poptávce po AI. Firma zároveň zvýšila celoroční výhled tržeb na 11,5 miliardy USD.
Shares of Arista Networks (ANET +0.28%) charged sharply higher in the first half of 2026, gaining 29.6%, according to data supplied by S&P Global Market Intelligence. That's more than three times the roughly 10% gains of the S&P 500.
The network specialist released back-to-back strong quarterly reports, and strong adoption of artificial intelligence (AI) sent its stock to new all-time highs.
Image source: The Motley Fool.
Second verse, same as the first Arista Networks delivered its fourth-quarter report in early February, and the results were impressive. The company generated record quarterly revenue of $2.49 billion, which grew 29% year over year and 8% quarter over quarter. This drove adjusted earnings per share (EPS) of $0.82 up 24%. Furthermore, Airsta's strong operating margin -- at 47.5% -- helped the company surpass $1 billion in quarterly net income for the first time.
Management suggested its growth streak would continue, increasing its 2026 revenue outlook to $11.25 billion or 25% growth, fueled by an operating margin of 46%.
When Arista reported its first-quarter results just three months later, its growth accelerated. Record revenue of $2.7 billion climbed 35% year over year and 9% quarter over quarter, while adjusted EPS of $0.87 rose 32%. The company also delivered operating cash flow of $1.69 billion, the highest in its history. Arista said it expects its AI-related sales to more than double to $3.25 billion over the next year.
For the second time in as many quarters, management increased its full-year forecast, now guiding for revenue of $11.5 billion or 28% growth, with its operating margin potentially inching higher at 46% to 47%.
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During the Q1 earnings call, CEO Jayshree Ullal said that, in addition to two existing customers that generate 10% or more of revenue -- Microsoft and Meta Platforms -- Arista expects to add "at least one, maybe two" new 10% plus customers before the year is over. That suggests significant upside to the company's already rapid growth.
Arista has an almost unanimous blessing from Wall Street, as 97% of the analysts who cover the stock rate it a buy or strong buy, and none recommend selling. Furthermore, the average price target of $192 implies additional upside of 10%.
Moreover, Arista is a leader in the field of networking, but don't take my word for it. The company has made frequent appearances in Gartner's vaunted Magic Quadrant for data center switching, enterprise wired and wireless local area networks (LAN), and software-defined wide area networks (SD-WAN).
Given the company's crucial role in the data center industry, its continuing history of innovation, and its accelerating growth, I believe Arista Networks is an unqualified buy.
Danny Vena, CPA has positions in Arista Networks, Meta Platforms, and Microsoft. The Motley Fool has positions in and recommends Arista Networks, Meta Platforms, and Microsoft. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
Arista Networks spustila AI-řízené ETM pro VeloCloud SD-WAN a přidala zero trust bezpečnost, firewall, prevenci hrozeb i filtrování Geo-IP a DNS. Novinka má zjednodušit správu poboček a snížit chyby při konfiguraci.
Key Takeaways Arista launched AI-driven ETM for VeloCloud SD-WAN with integrated zero trust security.ANET adds firewall, threat prevention, segmentation, Geo-IP and DNS filtering in one platform.Arista integrates AVA to explain policies and simulate traffic before deployment to reduce errors. Arista Networks, Inc. (ANET - Free Report) is strengthening its enterprise networking portfolio with the launch of artificial intelligence (AI)-driven Edge Threat Management (ETM) for its VeloCloud SD-WAN platform. The new offering integrates zero trust security directly into the SD-WAN edge, enabling enterprises to combine networking and security on a single unified platform while simplifying branch deployments.
Arista's software-based ETM upgrade adds advanced firewall protection, leading to threat prevention, zone-based segmentation, Geo-IP filtering and DNS filtering to the VeloCloud SD-WAN solution. Managed through the VeloCloud Orchestrator, the solution provides centralized visibility and a common policy engine, allowing businesses to simplify security management and enforce consistent policies across branch locations.
The company's new platform also integrates Arista Autonomous Virtual Assist (AVA) to enhance security operations with AI-powered intelligence. Through Ask AVA features such as Policy Explainer and Traffic Simulation, it helps administrators understand complex security rules in simple language and evaluate the impact of policy changes before deployment, reducing configuration errors and improving operational efficiency.
As enterprises increasingly prioritize unified networking and security, the latest launch expands Arista's VeloCloud capabilities while reinforcing its strategy of delivering AI-driven networking solutions for enterprise branch environments.
How Are Competitors Advancing in Enterprise Networking?Arista faces competition from Cisco Systems, Inc. (CSCO - Free Report) and NVIDIA Corporation (NVDA - Free Report) . Cisco has expanded its enterprise networking portfolio to meet the growing demand for AI and cloud infrastructure. The company offers advanced switches, routers, wireless networking and security solutions that improve network performance and reliability. Cisco's focus on software-defined and cloud-managed networking helps enterprises modernize their IT infrastructure.
NVIDIA has strengthened its enterprise AI business with new AI hardware, software and networking solutions. The company is helping businesses build and run AI applications through its AI platforms and computing systems. NVIDIA is working with cloud providers and enterprise customers to support the growing adoption of AI across industries.
ANET’s Price Performance, Valuation & EstimatesShares of Arista have gained 54.5% over the past year against the industry’s decline of 14.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 16.98, above the industry average of 3.96.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 0.8% to $3.64 over the past 60 days, while the same for 2027 has also increased 0.2% to $4.39.
Image Source: Zacks Investment Research
Arista currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Arista Networks ve 1. čtvrtletí zvýšila tržby o 35,1 % na 2,71 miliardy USD díky poptávce v cloudu, AI a podnicích. Na 2. čtvrtletí čeká tržby ve výši kolem 2,8 miliardy USD.
Key Takeaways Arista reported 35.1% revenue growth in Q1 2026, driven by cloud, AI and enterprise demand.ANET expanded its Etherlink portfolio with 1.6T platforms to support growing AI infrastructure needs.Arista expects about $2.8B Q2 2026 revenues and projects $11.5B revenues with $3.5B AI revenues in 2027. Arista Networks, Inc. (ANET - Free Report) is witnessing solid revenue growth, backed by solid customer wins and robust portfolio strength. In the first quarter of 2026, revenues increased 35.1% year over year to $2.71 billion, driven by solid momentum across cloud, AI and enterprise markets.
Arista's Etherlink portfolio remains one of the key revenue drivers. The company offers a comprehensive portfolio spanning AI Scale-Out, Scale-Across and the emerging Scale-Up networking architectures. These networking architectures allow customers to seamlessly deploy large AI training and inference clusters. Its 800G Ethernet solutions continue to witness strong adoption, with more than 100 cumulative customer deployments.
Its AI networking capabilities include cluster load balancing, intelligent packet buffering, Smart System Upgrades and EOS software help optimize AI workload performance. Such comprehensive portfolio offerings are gaining traction among hyperscalers, AI cloud providers and enterprise customers.
The company is continuously broadening its portfolio to capitalize on the expanding AI infrastructure spending. It has recently introduced the 7060XE7 Series, a new portfolio of 1.6-terabit networking platforms designed for rack-scale AI infrastructure. The platform expands the company’s Etherlink portfolio and is intended to support both scale-out and scale-up AI fabric architectures as AI workloads grow in size and complexity.
Backed by continued strength in cloud and AI deployments, Arista expects second-quarter 2026 revenues of approximately $2.8 billion. The company also expects $11.5 billion in revenues in 2027, indicating an 27.7% year over year growth. AI-related revenues are projected to reach $3.5 billion.
How Are Competitors Faring?Arista faces competition from Hewlett Packard Enterprise Company (HPE - Free Report) and Cisco Systems, Inc. (CSCO - Free Report) . In the second quarter of 2026, HPE reported revenues of $10.7 billion, up 40% year over year. HPE’s quarterly performance was supported by strong demand across the portfolio, with orders more than doubling year over year and driving a record backlog. The company is expanding its enterprise AI offerings to make it easier for customers to develop, fine-tune and deploy models across data centers, edge environments and public clouds. The company continues to build turnkey AI factory solutions and Private Cloud AI offerings co-engineered with NVIDIA, aimed at accelerating time to value for inferencing, retrieval, augmented generation and model tuning. The Juniper Networks acquisition is reshaping HPE’s mix by expanding its portfolio across campus and branch, data center switching, routing and security.
Cisco reported revenues of $15.841 billion, up 12% year over year. The growth is driven by solid demand for security products, AI-optimized switching, routing and optics. Cisco continues to expand AI data center offerings, including Nexus innovations, intelligent packet flow and configurable AI pods, which can sustain a higher mix in networking through fiscal 2026.
ANET’s Price Performance, Valuation & EstimatesShares of Arista have surged 72.5% over the past year against the industry’s decline of 11.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 18.25, above the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Arista’s earnings for 2026 has remained unchanged, and 2027 has increased over the past 60 days.
Image Source: Zacks Investment Research
Arista currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
There are plenty of artificial intelligence (AI) stocks grabbing investors' attention these days, and many of them are semiconductor designers and manufacturers. But while the AI data center boom is driving many chip stocks higher, there are other ways to play the artificial intelligence supercycle.
Arista Networks (ANET 3.78%) is a prime example. The company's networking equipment and software help the biggest tech companies run their AI data centers -- and it could benefit from infrastructure spending for years to come.
Image source: Getty Images.
Why Arista stands out in the AI crowd Arista Networks sells data center networking hardware and software that enables tech companies to manage their data center systems. That's become a very good business to be in, considering that the largest technology players are spending an estimated $750 billion on AI infrastructure this year alone.
While Arista has most of its business tied to a handful of large companies -- including Microsoft and Meta -- it's somewhat protected from this concentration. Once a company begins using Arista's hardware and software, it becomes difficult to switch. AI data center systems are complex and costly, and hardware and software upgrades are expensive.
What's more, most of its customers don't want to switch, with independent data showing that 94% of them are strongly positive about Arista.
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Arista is in great financial shape Arista reported its first-quarter 2026 results in May, and investors were initially disappointed by the management's gross margin guidance of between 62% to 64% for 2026. Arista's gross margins for 2025 were 64.1%, but investors were hoping they would expand further.
The slight margin decline comes as memory prices have skyrocketed over the past few years due to a supply shortage driven by AI data centers. Arista uses memory in its hardware systems, so it's feeling the pricing pressure too. It's worth noting that this isn't an Arista-specific issue. Apple just raised prices on many of its devices due to rising memory costs.
The bigger picture -- and what potential investors should focus on -- is how Arista is benefiting from surging AI data center demand. The company's sales jumped 35% to $2.7 billion in the first quarter, and non-GAAP (generally accepted accounting principles) earnings per share rose nearly 32% to $0.87.
What's more, Arista has no debt, it generated $1.64 billion in free cash flow in the first quarter, and management expects sales to rise 28% in 2026 to $11.5 billion.
In short, Arista is in great financial shape and continues to benefit from a rapidly expanding AI market.
If there's one concern for potential buyers of Arista Networks, it's that its stock currently has a trailing price-to-earnings (P/E) ratio of 56, above the tech sector average of about 41.
But with strong sales and earnings growth, high gross margins, and strong free cash flow, there's little to worry about with Arista.
Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple, Arista Networks, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
Arista Networks ve fiskálním 1. čtvrtletí roku 2026 zvýšila tržby o 35,1 % na 2,71 miliardy USD a zvedla výhled tržeb na 11,5 miliardy USD. Z AI má letos přijít 3,5 miliardy USD, tedy více než dvojnásobek oproti loňsku.
Networking company Arista Networks, Inc. (ANET) up 3,218% since 2015’s first outlier inflow.
ANET’s programmable networking equipment and low-latency switch solutions help many of the world’s largest organizations run their cloud and AI networks. The company’s first-quarter fiscal 2026 report showed $2.71 billion in quarterly revenue (up 35.1% year-over-year), diluted per-share earnings of $0.87 (a 31.8% gain), and raised 2026 revenue guidance to $11.5 billion (representing 27.7% annual growth), with $3.5 billion coming from AI (more than double the prior year).
No wonder ANET shares are up 26% so far this year – and they could rise more. MoneyFlows data shows how Big Money investors are again betting heavily on the stock.
Arista Networks Being Bought Institutional volumes reveal plenty. In the last year, ANET has enjoyed strong investor demand, which we believe to be institutional support.
Each green bar signals unusually large volumes in ANET shares. They reflect our proprietary inflow signal, pushing the stock higher:
Source: www.moneyflows.com Plenty of technology names are under accumulation right now. But there’s a powerful fundamental story happening with Arista Networks.
Arista Networks Fundamental Analysis Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ANET has had strong sales and earnings growth:
Also, EPS is estimated to ramp higher this year by +22.7%.
Now it makes sense why the stock has been generating Big Money interest. ANET has a track record of strong financial performance.
Marrying great fundamentals with MoneyFlows software has found some big winning stocks over the long term.
Arista Networks has been a top-rated stock at MoneyFlows for years. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.
It’s had 90 Big Money outlier inflow signals since 2015 and is up 3,218% since then. The blue bar below shows when ANET was a top pick in the last year…institutions keep supporting gains:
Source: www.moneyflows.com Tracking unusual volumes reveals the power of money flows.
This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.
Arista Networks Price Prediction The ANET action isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.
Disclosure: the author holds no position in ANET at the time of publication.
If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level and follow our free weekly MoneyFlows insights.
Ciena zvýšila výhled tržeb pro fiskální rok 2026 na 6,3 miliardy USD díky silné poptávce po AI infrastruktuře a optických sítích. Firma zároveň hlásí, že poptávka stále převyšuje nabídku.
Key Takeaways CIEN raised fiscal 2026 revenue guidance, supported by AI infrastructure and optical networking demand.CIEN saw strong growth in service provider revenue and expanding hyperscaler engagements.ANET lifted its 2026 revenue outlook but faces supply constraints and gross margin pressure. Ciena Corporation (CIEN - Free Report) and Arista Networks, Inc. (ANET - Free Report) are among the key beneficiaries of the growing investments in artificial intelligence (AI) infrastructure, as organizations increasingly require advanced networking solutions to support large-scale AI workloads. The rapid expansion of AI training, inference and data-intensive applications is driving demand for high-performance connectivity across data centers, cloud environments and wide-area networks. As a result, networking providers are seeing rising opportunities to deliver the infrastructure needed to move, manage and process massive amounts of data efficiently.
Both companies are capitalizing on these favorable industry trends through their respective technology portfolios. Arista Networks is strengthening its position in AI and cloud networking with its high-speed Ethernet switching and AI fabric solutions, while Ciena is benefiting from growing demand for optical networking, interconnect technologies and data center connectivity infrastructure. With AI-related investments continuing to accelerate across hyperscalers, cloud providers and enterprises, both companies are well-positioned to participate in the long-term growth of the AI networking market.
Let’s analyze their fundamentals, growth opportunities, market challenges and valuation to assess which one presents a stronger investment opportunity.
The Case for CIENCiena is benefiting from AI-driven demand across cloud and service provider markets, supported by its technology leadership, deep customer relationships and broad portfolio spanning systems, interconnects, software and services. In the second quarter, revenue increased, adjusted gross margin expanded and adjusted earnings per share nearly quadrupled. Management stated that a strong and growing backlog, combined with the company's leading technology portfolio, provides strong visibility and positions Ciena to capture long-term opportunities across WAN and data center networking.
The company is also gaining momentum from rising investments by hyperscalers and service providers in network infrastructure. Management noted that customers are prioritizing high-capacity, low-latency and high-speed connectivity to support AI model training, data ingestion and inference workloads. Ciena's addressable market is expected to nearly double to approximately $50 billion by 2029, driven by growth in both traditional WAN markets and high-growth data center opportunities. Service provider revenue increased 28% year over year, while revenue from service providers in India more than doubled, reflecting strong demand for managed optical fiber network deployments.
Ciena continues to benefit from demand for its latest networking solutions and expanding customer engagements. The company announced the industry's first multi-rail order for its RLS Hyper-Rail platform from a leading hyperscaler and is engaged in discussions with multiple additional hyperscalers, neoscalers and service providers. Its DCOM solution contributed to 88% year-over-year growth in the Routing and Switching segment, while initial orders from a second hyperscaler and lab qualifications with a third customer further broadened the customer base. The company also secured a new hyperscaler win for its coherent modules and remains on track to more than double pluggable revenue compared with 2025.
Ciena is further benefiting from customer co-creation initiatives and strong operational execution. Management stated that customers increasingly involve the company early in the development of new architectures, helping improve road map decisions, increase win rates and provide greater demand visibility.
Image Source: Zacks Investment Research
Management expects third-quarter fiscal 2026 revenue of $1.625 billion, plus or minus $50 million. The company also increased its fiscal 2026 revenue guidance to $6.3 billion, plus or minus $100 million, which implies roughly 32% year-over-year growth at the midpoint. Management attributed the stronger outlook to ongoing investments in AI infrastructure and continued robust demand for its optical networking solutions.
However, Ciena continues to operate in a supply-constrained environment where demand exceeds available supply. As a result, the company is making additional capital and operating expense investments to secure future manufacturing capacity and strengthen supply-chain resilience. Management also cited ongoing constraints in modem components and laser pumps used in amplifiers and line systems. In addition, inflationary pressures and higher variable compensation associated with stronger business performance are increasing operating expenses, prompting further investments to support anticipated future demand.
The Case for ANETArista is gaining from the rapid expansion of AI infrastructure and cloud networking demand, as enterprises, hyperscalers and AI providers increasingly deploy large-scale training and inference workloads. The company delivered strong first-quarter 2026 results, with revenue rising 35.1% year over year to $2.71 billion, exceeding guidance. Management highlighted growing traction for its cloud and AI networking strategy, supported by increasing adoption of its high-speed Ethernet solutions and leadership position in high-speed switching. Reflecting this momentum, Arista raised its 2026 revenue outlook to approximately $11.5 billion and increased its AI fabrics revenue target to $3.5 billion, indicating expectations for continued growth in AI-related deployments.
The company continues to benefit from expanding AI networking opportunities through its scale-out and scale-across architectures. The company reported more than 100 cumulative customers deploying 800-gigabit Ethernet solutions and expects 1.6-terabit deployments to reach production scale in 2027. Management noted strong demand for its Etherlink portfolio, AI fabric offerings and networking software, which support diverse AI accelerators and increasingly complex AI workloads. The company is also seeing growing adoption among cloud providers, neocloud operators and AI infrastructure customers, supported by the scalability, reliability and observability of its EOS platform.
Arista Networks also demonstrated strong financial and operational execution. Arista generated approximately $1.69 billion in operating cash flow, the highest in its history, and ended the quarter with $12.35 billion in cash, cash equivalents and marketable securities. Management highlighted continued investments in innovation, including next-generation AI networking products, advanced optics technologies such as XPO, and enterprise expansion initiatives, positioning the company to address future growth opportunities.
Despite strong demand trends, Arista is facing industry-wide supply constraints across wafers, silicon chips, CPUs, optics, memory and other key components. Management stated that demand is currently outpacing supply and expects these challenges to persist for the next one to two years. To secure supply and support customer deployments, the company has entered into multiyear purchase commitments and is incurring higher procurement costs, which may continue to constrain shipment capacity and operational flexibility.
The challenging supply environment is also creating pressure on profitability. Gross margin declined to 62.4% from 63.4% in the previous quarter, primarily due to customer mix and elevated component costs. Management expects ongoing gross margin pressure as it absorbs higher expenses for memory, silicon and other critical inputs while prioritizing supply continuity for customers.
CIEN vs. ANET Share Price PerformanceOver the past six months, CIEN shares have gained 91.6%, while Arista has increased 33.5%.
Image Source: Zacks Investment Research
Valuation for CIEN & ANETIn terms of Price/Book, CIEN shares are trading at 22.53X, higher than ANET’s 16.3X.
Image Source: Zacks Investment Research
How Do Estimates Compare for CIEN & ANET?Analysts have significantly revised their earnings estimates upward for CIEN’s bottom line for the current year.
Image Source: Zacks Investment Research
For ANET, there have been marginal upward revisions for the current year.
Image Source: Zacks Investment Research
CIEN or ANET: Which is a Better Pick?While CIEN sports a Zacks Rank #1 (Strong Buy) at present, ANET has a Zacks Rank #3 (Hold). Consequently, in terms of Zacks Rank and valuation, CIEN seems to be a better pick at the moment.
You can see the complete list of today’s Zacks #1 Rank stocks here.
